CIMA E2 Syllabus B. Managing people performance - Balanced Scorecard - Notes ^{14 / 19}

The Balanced Scorecard assesses organisational performance under four perspectives.

1. Measures of the 'Financial perspective' - Sales growth compared with the previous period, meeting a key financial target.

2. Measures of the 'Customer perspective' - Number of complaints, repeat purchases, target data from customer satisfaction surveys.

3. Measures of the 'Innovation and learning/growth perspective' - Amount of hours of staff training recorded as a percentage of budget, the percentage of new products sold in the year compared to total sales, process time to maturity.

4. Measures of the 'Internal business perspective' - Percentage of policies and claims issued on time, number of complaints received from policyholders.

Components of the balanced scorecard include both the current and future prospects of the organisation. It considers both the results and the causes of actual performance towards organisational objectives. Performance measures used should be able to identify cause-effect relations to enable employees to deal with poor performance and continue good practices.

Critical success factors(CSF)

CSF are aspects of an organisation which are essential for its success and help to achieve goals of the organisation. CSF for each organisation depend on the nature of the industry in which they operate in.